An increase in production results in an increase in marginal cost due to:

Name: An increase in production results in an increase in marginal cost due to:
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

The law of diminishing returns states that as production increases, the marginal gain in output will eventually decrease with each additional unit of input, assuming all other factors are constant. This leads to an increase in marginal cost because each additional unit of production requires more input costs for less output gain.

An Increase in Production Results in an Increase in Marginal